Question

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned becausea. ​Retail did not receive adequate consideration for the assignment.b. ​Tough Road was not an original party to the deal.c. Retail did not consent to the assignment.d. ​the assignment will materially increase the risk of nonperformance.

Answer 1

The correct answer is d. ​the assignment will materially increase the risk of nonperformance.

Step-by-step explanation:

The estimation of contractual risks in the "common law" is dominated by the autonomy of private will. For this reason, there would not seem to be an explicit legal obligation that obliges the parties to enumerate the risks and distribute them except if one takes into account the contractual "charges" suggested by the doctrine, especially the burden of sagacity and diligence, transparency and legality. However, the classification, estimation and allocation of risk varies according to the legal nature of the contract, to the extent that the consequences of the risks of random contracts differ substantially from those of commutative contracts.